The Clark Howard Podcast 12.10.24 What Is Mortgage Recasting? / Fast Food Innovations
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Dec 10, 2024 Discover the ins and outs of mortgage recasting, including its benefits and how it stacks up against principal prepayment. Dive into the world of innovative fast food, where apps and AI are transforming customer experiences, alongside the rise of healthier vending machine options. The discussion also touches on the implications of fast food delivery fees and expands into crucial financial choices, like whether to contribute to a Roth IRA or prioritize mortgage payments.
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Mortgage Recast vs. Prepayment
- Consider a mortgage recast if struggling with high payments; it lowers monthly payments by applying a lump sum to the principal while keeping the loan term the same.
- If you can handle the current payment, prioritize principal prepayments for a guaranteed return and faster loan payoff.
Financing Home Improvements
- Use a home equity line of credit (HELOC) for home improvements you can pay off in 3-4 years.
- For longer repayment periods (5+ years), choose a fixed-rate home equity loan, ideally a 5-year term.
Retirement Savings vs. Mortgage Prepayment
- Prioritize Roth IRA contributions over prepaying a low-interest mortgage (2.99%).
- Focus on retirement savings, especially with limited extra funds, as Roth IRAs offer tax-free growth and withdrawals.